CGI Group's Quarter Profit Up on New ContractsBy Reuters | Print
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The Canadian outsourcing and consulting computer services company, CGI, booked C$1.2 billion in new contract wins during the quarter.
Jan 26 (Reuters) - CGI Group Inc's (TO:GIBa) first quarter profit rose, helped by new contracts and its Stanley Inc acquisition last year.
The company also said it plans to buy back up to 23 million, or 10 percent of its common shares, during its next fiscal, as it extended the share buyback program to Feb. 2012.
Canada's biggest technology outsourcing and consulting company posted net income of C$126.6 million, or 45 Canadian cents a share, compared with C$111.2 million, or 37 Canadian cents a share, last year.
Excluding items, the company earned 39 Canadian cents a share.
CGI, which provides computer services to companies ranging from Bombardier Inc (TO:BBD) to Cirque du Soleil, said revenue rose 23 percent to C$1.12 billion.
Analysts on average expected earnings of 34 Canadian cents a share on revenue of C$1.12 billion, according to Thomson Reuters I/B/E/S.
During the quarter, the company booked C$1.2 billion in new contract wins, extensions and renewals, bringing the total bookings over the last twelve months to C$4.2 billion.
The company's backlog was C$13.09 billion at the end of the quarter, from C$11.14 billion last year.
Last August, CGI completed the $940 million purchase of U.S.-based IT services firm Stanley Inc -- a deal that expanded its work with U.S. government agencies in defense, cyber-security and intelligence.
The Montreal-based company's shares, which have gained about a quarter of their value in the past year, closed at C$18.74 on Tuesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)